US Tax Credit Could Rev Up Electric Vehicle Production In Canada
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NEW YORK, Aug. 4, 2022 /PRNewswire/ -- Canadian car makers breathed a sigh of relief last week when US lawmakers decided to scrap part of a large incentive package for electric vehicles (EVs) that originally excluded EVs assembled in Canada from a proposed $7,500 US consumer tax credit for "clean vehicles." The credit, which includes battery-electric, plug-in hybrids and hydrogen fuel cell, is part of a $369 billion proposed new spending on climate-related initiatives included in the Inflation Reduction Act. US Senators Chuck Schumer and Joe Manchin, both Democrats, reached an agreement late Wednesday to include the credit and a range of other tax and investment measures. Those measures aim at growing the clean energy sector and spurring the adoption of electric vehicles in the bill, which hopes to revive a struggling economy to emerge from inflation below 9.1%. This is good news for EV companies like EV Technology Group (NEO: EVTG) (OTCQB:EVTGF), Tesla (NASDAQ:TSLA), Nio (NYSE:NIO), Arrival (NASDAQ:ARVL), and ElectraMeccanica (NASDAQ:SOLO).
EV Technology Group (NEO: EVTG) (OTCQB:EVTGF) is creating value for its customers by acquiring and partnering with iconic brands with significant growth potential in unique markets, and controlling end-to-end capabilities.
On August 3, EV Technology Group announced that it has signed a definitive agreement to acquire leading British Tier 1 supplier and specialist manufacturer, Fablink Group Holdings in a transaction valued at £38.8 million (US$47.3 million), £29.5 million (US$36.0 million) of which will be paid in cash for 76% of Fablink. Fablink will have an option to sell the remaining 24% of Fablink for £9.3m in Common Shares of the Company. (US$ figures calculated using exchange rate as at date of announcement).
Fablink is a leading UK manufacturing and engineering organization with over C$110 million in annual revenue and strong growth thanks to its exposure to electric vehicle (EV) demand. The company recently launched Streamline Automotive to serve the explosion in EV assembly and manufacturing demand, emerging as a national leader in the EV sector. Fablink is also the contract vehicle manufacturing & assembly partner of MOKE International, which recently released the Electric MOKE, and in which EV Technology Group recently announced a definitive agreement to acquire up to 100% of its shares.
Fablink Group is a strategic acquisition for EV Technology Group, allowing the company to bring engineering, supply chain, manufacturing and assembly expertise in-house and strengthening its commercial offerings. As part of the acquisition, EV Technology Group will appoint Fablink CEO Richard Westley as its Chief Operating Officer upon completion of the transaction.
EV Technology Group also recently bolstered its team with the appointment of Mark Stubbs as Head of Design. Stubbs will lead the design direction of all the iconic brands under the EV Technology Group strategic brands group, which includes iconic brands such as the MOKE.
Stubbs holds over 20 years of experience in automotive design, with a successful track record of leading design for top OEMs such as Ford, Nissan, General Motors and Bugatti, making him one of the most prevalent car designers of today. Stubbs was formerly the founder and Chief Designer at Radford Motors, the luxury coachbuilder that was founded in 1948. He notably relaunched the brand last year with the Lotus Type 62-2 at the signature Quail Lodge event in Pebble Beach.
Stubbs will play an integral role at EV Technology Group, bringing his specialized knowledge and expertise to the board to create value to the brand and align with the company's mission to bring back the joy of motoring in an electric world. He will be working alongside Chief Product Officer Dan Burge, focusing on product in the US, a key market where rapid growth is expected in the next 12 months. Stubbs is the latest key hire for EV Technology Group as the company continues its expansion plans.
Last month, EV Technology Group announced that its strategic partner MOKE International Limited (MIL), with which the company has just signed a definitive agreement to acquire up to 100% of the share capital of MIL, has launched a new direct-to-consumer website. It allows customers to configure, pre-order, test and arrange delivery of the electric MOKE.
MOKE International has officially announced the launch of its consumer web platform. The website complements the MOKE brand's offering of an end-to-end customer experience, extending from the real-world experience offered by the recently opened Casa MOKE flagship store in St Tropez. This online experience allows customers to experience the brand's highest level of service, from pre-sales to purchase and after-sales. This website offers customers the option of pre-ordering an electric MOKE, with a £990 deposit required to secure a place. The site also offers delivery options, including Casa MOKE in St. Tropez, Hendy Group's UK south coast-based dealership, or delivery direct to their home in the UK or Europe.
For more information about EV Technology Group, click here.
In the second quarter, Tesla (NASDAQ:TSLA) achieved record production rates across the company. However, the company saw continued manufacturing challenges related to shutdowns, global supply chain disruptions, labor shortages, and logistical and other complications, limiting its ability to operate its factories at full capacity consistently. The company plans to increase its manufacturing capacity as soon as possible. Over several years, it expects to reach 50% average annual growth in vehicle deliveries. The growth rate will depend on Tesla's capacity of equipment, factory availability, operational efficiency and the supply chain capacity and stability.
Nio (NYSE:NIO) delivered 12,961 vehicles in June 2022, representing a solid year-over-year increase of 60.3%. Deliveries consisted of 8,612 premium smart electric SUVs, including 1,684 ES8, 5,100 ES6 and 1,828 EC6, and 4,349 ET7, the company's flagship premium smart electric sedan. NIO delivered 25,059 vehicles in the second quarter of 2022, up 14.4% year-over-year. Cumulative NIO vehicle deliveries reached 217,897 as of June 30, 2022. On June 15, 2022, On July 11, NIO provided an update in response to a short-seller report released by Grizzly Research LLC on June 28, 2022. The company reiterated its continued and unwavering commitment to maintaining high standards of corporate governance and internal control, as well as transparent and timely disclosure following applicable rules and regulations.
Arrival (NASDAQ:ARVL) announced on June 21 that the Arrival Van has obtained EU certification and received European Whole Vehicle Type Approval (EUWVTA). Arrival has successfully passed all functional and security testing required to achieve EUWVTA, which is a critical step towards starting trials with customers in the coming months. The company is expected to start production of the Van in Bicester, UK, in the third quarter of 2022. Arrival's zero-emission van is deliberately designed to be an environmentally sustainable and economically efficient commercial electric vehicle, compared to traditional vans. On July 4, Arrival announced that Mandeep Bajwa has joined the company's management team as Chief Human Resources Officer (CHRO).
ElectraMeccanica (NASDAQ:SOLO) reported Q1 2022 revenue of $1.05 million, up more than 400% year-on-year, and EPS of ($0.15) as it ramps up production. The company manufactured 170 SOLOs during the period, delivering a total of 45 despite strong logistical headwinds. ElectraMeccanica maintains a working capital of $215 million. The assembly plant based in Mesa, Arizona remains on track to go online by year-end 2022. CEO Kevin Pavlov expanded the company's leadership team with experienced operations executives Joe Mitchell as COO and Kim Brink as CRO. He added seasoned financial services and auto executive Bill Quigley on the Board.
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